Introduction
A green economy promotes economic growth while reducing environmental risks, resource depletion and ecological degradation. For India, the challenge is to achieve industrialisation, employment generation and global competitiveness without exceeding ecological limits.
Need for transitioning towards a green economy
- Resource efficiency: India’s industrial growth increases demand for finite resources such as minerals, water and fossil fuels. Efficient resource utilisation can reduce production costs and import dependence.
Example: Recycling aluminium requires substantially less energy than producing primary aluminium. - Climate change mitigation: Industrial activities contribute significantly to greenhouse gas emissions, necessitating cleaner production processes.
Data: The industrial sector accounts for a substantial share of India’s energy-related CO₂ emissions. - Environmental pollution: Conventional manufacturing contributes to air pollution, water contamination and hazardous waste generation.
Example: Untreated industrial effluents from textile and chemical industries affect river ecosystems. - Global competitiveness: International markets increasingly emphasise low-carbon production and environmental compliance.
Example: The European Union’s Carbon Border Adjustment Mechanism (CBAM) creates incentives for Indian exporters to reduce the carbon intensity of products. - Employment generation: Renewable energy, waste management, electric mobility and green construction can create new employment opportunities.
Report: ILO’s World Employment and Social Outlook 2018 highlighted the employment potential of a transition towards sustainable practices. - Intergenerational equity: Sustainable production prevents the depletion of natural capital and preserves ecological resources for future generations.
Framework: The concept of sustainable development, articulated in the Brundtland Report (1987), emphasises meeting present needs without compromising future generations.
Measures to promote a green economy
- Circular economy: Promote reduce, reuse, repair, refurbish and recycle practices to minimise waste and resource extraction.
Initiative: Mission LiFE encourages sustainable consumption and environmentally responsible lifestyles. - Cleaner industrial technologies: Encourage energy-efficient machinery, green hydrogen, electrification and low-carbon manufacturing.
Initiative: National Green Hydrogen Mission seeks to position India as a global hub for green hydrogen production and utilisation. - Extended Producer Responsibility (EPR): Make manufacturers accountable for the collection, recycling and environmentally sound disposal of products after use.
Example: EPR frameworks for plastic packaging, batteries and e-waste. - Green financing: Mobilise investments for renewable energy, clean technologies and sustainable infrastructure.
Initiative: Sovereign Green Bonds provide financing for eligible green public-sector projects. - Sustainable industrial clusters: Develop common effluent treatment plants, renewable energy infrastructure and resource-sharing facilities.
Example: Common Effluent Treatment Plants help small-scale industrial units manage wastewater collectively. - Just transition: Provide reskilling, social protection and alternative livelihood opportunities to workers and communities dependent on carbon-intensive industries.
Framework: ILO Guidelines for a Just Transition towards Environmentally Sustainable Economies and Societies for All.
Conclusion
India’s green transition must move beyond isolated environmental interventions towards a structural transformation of production and consumption. Integrating resource efficiency, technological innovation, circularity and a just transition can make industrial growth economically competitive, socially inclusive and environmentally sustainable.